How Much to Leave Out of the Market

[Jeff W]

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i think you are looking at this too narrowly.

we don't know when the random expenses will occur, if they trigger capital gains on assets you've held for a while, then the taxes will be substantial. thats just an example.

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So you sell shares that you recently purchased that have fewer capital gains(Highest In, First Out).

When you hold cash, you have to pay all the taxes as you accrue interest and growth on that money is lost. Much of equity return is tax-deferred(dividends being the exception) and transaction costs these days are miniscule.